PI Industries was the favorite mid cap stock of mutual funds in July. Mutual funds bought ₹1,110 crore worth of the agri-science stock in July, shows Morningstar data. Most big broking houses maintain a buy rating on the agri-science company. Emkay Global recommends to buy the stock with a target price of ₹2,250. The stock is hovering around the levels of ₹1,900. PI Industries touched the highs of ₹2,160 in the last 52 weeks, a 52-week lows of ₹970 in March. Year-to date the stock has grown by 35%. PI Industries , in July, launched a QIP to raise upto ₹2,000 crore.
Mutual funds also bought the newly listed specialty chemical stock Rossari Biotech worth ₹407 crore. The company launched its IPO in July and made a bumper opening on the bourses with 75% gains from the issue price of ₹425 per share. The share went up to touch the highs of ₹804 per share the same day. The IPO of Rossari Biotech was subscribed 77 times. It was the first successful IPO to enter the stock markets after SBI Cards and Payment Services in March this year. The share closed at ₹782 on Wednesday.
Balkrishna Industries was the third top most share bought by mutual funds in July. The company is withstanding the business downturn better than mainstream tyre manufacturers. Shares of the specialized tyre maker hit a new 52-week high recently, and have risen 37% so far in 2020. The share last traded at ₹1,365 on Wednesday.
Mutual funds also added the cement manufacturer- ACC to their portfolios. Most brokerage houses maintain a buy rating on ACC. They expect the gloomy demand of cement to pick up soon as the lockdowns open and construction work resumes across nation.
Other top purchases include Page Industries, the stock is down 24% year-to date, MindTree and IndiaMartInterMESH.
Here are the top 10 mid and small cap purchases by mutual funds in July:
- PI Industries ₹1,110 crore
- Rossari Biotech ₹407 crore
- Balkrishna Industries ₹401 crore
- ACC ₹326 crore
- Page Industries ₹263 crore
- MindTree ₹247 crore
- IndiaMart InterMESH ₹217 crore
- Ashok Leyland ₹181 crore
- Voltas ₹178 crore
- Mphasis ₹164 crore
Source: Morningstar India
